Paying Off Student Loans After Graduation–Ways Students Erase Private And Federal Loan Debt And Problems That May Arise

Paying off student loan debt after graduation can be accomplished through various methods and depending on the type of debt a graduate may have, there are ways which students can erase either private or federal student loan debt and avoid any problems that may arise. Understandably, the costs of attending a college or university have necessitated that many seek some form of student loan aid, be it a minimal amount or one of the main sources of college tuition assistance, but when it comes to erasing this debt after college, many students are finding it to be difficult thanks to rising tuition costs that may have led to a higher amount of student loan borrowing over the past years.


It was recently stated in an article on that, “In 2010, student loan debt eclipsed credit card debt for the first time, and it is not unusual for students, especially med students, to graduate with six-figure debt.” When it comes to paying off substantial amounts of debt, students who may have chosen common federal loans will find that simply defaulting on these loans could be detrimental as the IRS could keep a graduate’s income tax refunds until their debt is repaid or garnish the wages of a graduate who still owes money but has failed to pay. Also, there have been practices in the past where graduates considered using credit cards to pay off their debts, but this has been an option that is not allowed, even though some students may attempt to simply pay off debt on a low interest credit card in the hopes of reducing the total costs they will pay.


Yet, when it comes to options for students with federal debt, there are consolidation loan options, income-based repayment plans, and even forbearance opportunities that can help students avoid missing payments and simply get themselves in a better financial position to begin combating these federal education loan debts. Direct Loans, which typically services federal student loan debts, can help graduates find an affordable repayment plan that is specifically suited for their financial position, particularly if students want to repay their student loan debt but may have been in a financial position where they cannot do so due to underemployment or being unemployed.


There are some students who may enter into a public service career, which could offer them the chance at student loan debt forgiveness, while others may be working with a federal group or organization that will help repay their student loans for a set period of time while they are employed. However, some of these benefits are not available to private student loans, yet, there are some programs being implemented by private lenders to help bring more students back into the private student loan sector.


While it will depend on the lender of the private student loan as to what options are available to assist students when seeking more affordability on their debt repayment options, many are advertising not only low rates, but students who pay on time may be forgiven a percentage of what they owe, there are also some forgiveness options for particular service related occupations which a graduate may enter into after college, and there are also some opportunities for students to consolidate debt, which again, can bring more affordability on repayment obligations.


Simply put, there are plans for both private and federal student loan debt repayment they can make the costs of these debt obligations more affordable for almost anyone after graduation.  However, students who are waiting out there grace period to begin paying off their student loans but may find that they are not in a position to meet these additional payments when they are required, may want to address these concerns with their lender early so that proper planning can be made and an affordable repayment option can be found so that missed payments will not begin early in the repayment life of a particular student.